Syrofoam, Sunk Costs, And Alternative Energy

One time I was living with a retro-hippie sympathizer.  He invited a retro-hippie over to our apartment.  She criticized my use of Styrofoam plates, cups and bowls.  I retorted that the Styrofoam was already made.  They were going to be used by someone.  I understand general equilibrium effects, and my purchase stimulated demand and hence supply.  But the idea was the Styrofoam was made and it was cheaper (at least in my mind) to use than "real" dishes.  The negative parts of Styrofoam were sunk costs.

I feel similarly about oil.  Part of me thinks that oil is unsustainable.  But it is still cheaper.  I have never seen a credible analysis that says hybrids are cheaper than traditional compact cars for most people's driving habits.  As we stand today, wind and solar just can't do it.  Most people now see that ethanol was policy-induced mistake that cost more than it was worth. 

So I am going to keep driving my dad's truck and not worry about "our" (inter)dependence on oil or "promoting" alternative energy.  The oil in the ground, like death, is just a sunk cost.